Stocks Opened Sharply Lower on Trouble in Portugal

U.S. stocks opened sharply lower on Thursday, weighed by a slump in European shares on concern over the health of  Portugal’s top listed bank. The Dow Jones Industrial lately lost 166.31 points, or 0.98%, to 16,819.30.  The S&P 500 was down 18.26 points, or 0.93%, to 1,954.57. The Nasdaq Composite fell 60.16 points, or 1.36%, to 4,358.88.

Espirito Santo International delayed coupon payments on some short-term debt sent shivers through Portugal’s financial sector. Espirito Santo Financial Group SA , the controlling shareholder of BES, on Thursday suspended trading in its own shares and bonds.

Fewer people sought U.S. unemployment benefits last week, driving down the level of applications to nearly the lowest in seven years. The Labor Department says weekly applications for unemployment aid dropped 11,000 to a seasonally adjusted 304,000.

Progressive Corp. (PGR), the fourth-largest U.S. car insurer, said second-quarter profit fell 9.6 percent as investment gains narrowed. Net income dropped to $293.4 million, or 49 cents a share, from $324.6 million, or 54 cents, a year earlier.